A recent investigation by Kharon has uncovered red flag indicators of sanctions and export control evasion related to Russia, shedding light on the activities of electronic trading companies like Sinno Electronics Co. Limited, which was sanctioned by the U.S. in 2022 for supplying goods to Russia's defense industry.
Based in Hong Kong, Sinno Electronics is closely associated with several trading companies that continue to supply restricted products of potential military use to Russia. These companies acquired western-origin goods that they then sent to Russian customers even after Sinno Electronics was sanctioned for providing support to Russian military end users.
Sinno Group Limited and MegaChips Limited are just two of the firms associated with Sinno Electronics that have shipped integrated circuits, photosensitive semiconductor components, and other restricted items to Russian customers in 2022 and 2023.
Shared Customers
Of particular concern, Sinno Group Limited shipped electronic integrated circuits to Russian entities that had received similar goods from Sinno Electronics before it was sanctioned.
An integrated circuit is a small electronic device made up of multiple interconnected electronic components, such as transistors, resistors, and capacitors, which are imprinted on a single semiconductor material, typically silicon. These circuits play a critical role in defense and military production by enabling the development of advanced, reliable, and secure electronic systems.
Based in Hong Kong, Sinno Electronics is closely associated with several trading companies that continue to supply restricted products of potential military use to Russia. These companies acquired western-origin goods that they then sent to Russian customers even after Sinno Electronics was sanctioned for providing support to Russian military end users.
Sinno Group Limited and MegaChips Limited are just two of the firms associated with Sinno Electronics that have shipped integrated circuits, photosensitive semiconductor components, and other restricted items to Russian customers in 2022 and 2023.
Shared Customers
Of particular concern, Sinno Group Limited shipped electronic integrated circuits to Russian entities that had received similar goods from Sinno Electronics before it was sanctioned.
An integrated circuit is a small electronic device made up of multiple interconnected electronic components, such as transistors, resistors, and capacitors, which are imprinted on a single semiconductor material, typically silicon. These circuits play a critical role in defense and military production by enabling the development of advanced, reliable, and secure electronic systems.
Kharon users can explore the Sinno Electronics network in ClearView. Click here to view.
Shared Identifiers
Another company involved in supplying integrated circuits and semiconductor components to Russia is MegaChips Limited.
Between December 2022 and June 2023, MegaChips shipped these goods to Limited Liability Company Kvazar, which was sanctioned by the U.S. in May 2023 “for operating or having operated in the electronics sector of the Russian Federation economy.”
Based on publicly available data, Kharon uncovered a close association between MegaChips and Sinno Electronics. Corporate and online domain records indicate that MegaChips Limited shares both a registration address and phone number with Sinno Electronics. The two companies’ website domains are also hosted on the same IP address, or Internet Protocol address – a unique identifying numerical label assigned to devices connected to a computer network.
On its website, MegaChips Limited advertises the sale of electronic components manufactured by major multinational corporations. However, it remains unclear how the company acquires these products from the manufacturers.
These emerging connections between Sinno Electronics, Sinno Group Limited, and MegaChips Limited highlight several red flag indicators of sanctions and export control evasion, as outlined in recent U.S. and U.K. government guidance. The connections and indicators also raise concerns about the role that networks of intermediaries and interconnected trading partners play in facilitating Russia’s sanctions evasion and the circumvention of export controls.
Another company involved in supplying integrated circuits and semiconductor components to Russia is MegaChips Limited.
Between December 2022 and June 2023, MegaChips shipped these goods to Limited Liability Company Kvazar, which was sanctioned by the U.S. in May 2023 “for operating or having operated in the electronics sector of the Russian Federation economy.”
Based on publicly available data, Kharon uncovered a close association between MegaChips and Sinno Electronics. Corporate and online domain records indicate that MegaChips Limited shares both a registration address and phone number with Sinno Electronics. The two companies’ website domains are also hosted on the same IP address, or Internet Protocol address – a unique identifying numerical label assigned to devices connected to a computer network.
On its website, MegaChips Limited advertises the sale of electronic components manufactured by major multinational corporations. However, it remains unclear how the company acquires these products from the manufacturers.
These emerging connections between Sinno Electronics, Sinno Group Limited, and MegaChips Limited highlight several red flag indicators of sanctions and export control evasion, as outlined in recent U.S. and U.K. government guidance. The connections and indicators also raise concerns about the role that networks of intermediaries and interconnected trading partners play in facilitating Russia’s sanctions evasion and the circumvention of export controls.
Source: U.S. Bureau of Industry and Security
